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What’s the Deal with Critical Illness Coverage?

What’s the deal with Critical Illness Coverage?

Written By: John Klotz
1-28-2008

There has been tremendous interest in a relatively new product called Critical Illness coverage. What is it? How does it work? And should you buy it?

Critical illness insurance provides a hassle free way to provide liquidity to meet the financial needs during a medical crises.

Why is Critical Illness Insurance Necessary?
Life insurance pays on death, or when the insured is terminally ill, with no long term living benefits
disability insurance replaces income, but is insufficient for the added burden of medical expenses
personal and retirement savings have intended purposes, other than medical expenses long term care insurance is too restrictive and inflexible many critical illness victims make a full recovery after a lengthy expensive treatment period.

Serious Illness Statistics
Heart attack, cancer and stroke are the 3 most common diseases of the 90s
1 in 3 will develop some form of life threatening cancer
30% of cancer victims are completely cured
1 in 4 will contract cancer or heart disease before they retire
1 in 2 heart attack victims are under age 65
95% of heart attach victims survive the initial occurrence
1 in 2 will contract heart disease
1 in 4 currently suffer from cardiovascular disease
70% of open heart surgery operations each year are coronary bypasses
1 in 20 run the risk of having a stroke before age 70
75% of stroke victims survive the initial occurrence

Conditions that Could be Covered

Alzheimer’s Disease
Angioplasty
Blindness (total & permanent)
Cancer (life-threatening)
Coronary Artery By-pass Surgery
Deafness (total & permanent)
Heart Attack (myocardial infarction)
Paralysis (2 or more limbs)
Permanent Total Disability
Stroke (cerebrovascular incident)
etc.

How Does Critical Illness Insurance Works

Select an amount of coverage from $15,000 to $500,000
Provide medical evidence of good health

Taxation
Claim payments are received tax-free

What to look for in Critical Illness Coverage
Clear definitions (medical terminology)
Comprehensive scope of coverage
Short elimination period (30 days)
Lump sum benefit payment
Liberal underwriting

Other neat benefits about Critical Illness Policy: The Best Doctors Benefit

Best Doctors is one of the worlds preeminent independent authorities on health care, conducting peer based physician evaluations in more than 40 specialties around the world. It provides personalized medical evaluations by world class specialists renowned as experts in your conditino. A panel of physicans including those affiliated with Harvard Medical School, reviews your diagnosis and recommends treatments to you and your physician within 10 days.

Furthermore, it provides you with a database of the three leading specialists for your condition, either in your hometown, across Canada, or around the world. It also arranges appointments with top medical experts in the US. Also, it provides you with discounts to US treatment facilities. Powerful stuff!

Should you purchase Critical Illness Coverage?

It’s a very personal decision, but probably the answer is yes. If your family has a history of these diseases, it’s a good bet that you are susceptible to getting the condition down the road. That being said, it’s best to speak with an advisor about the best program available for you.

This article was created  by John Klotz. John is President of Northwood Mortgage Life. You can reach John at john.klotz@northwoodmortgage.com or call 416-969-8130 ext. 230.